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Jakarta's year of leading diplomatically

Jessica Brown | The Wall Street Journal | 11 February 2011

Little more than a decade after its dramatic transformation from authoritarianism to become the world's second largest democracy, Indonesia is reasserting its status as a diplomatic heavyweight in the Asia Pacific. Jakarta is throwing itself into the role of chair of the Association of Southeast Asian Nations with gusto. So much gusto, in fact, that it requested a swap with Brunei to take up the rotating position two years early.

Only a month into the Asean top job, Indonesian Foreign Minister Marty Natalegawa has signalled that Jakarta wants to take on what is perhaps the most enduring and fraught issue in the region: the South China Sea disputes. Four Asean states— Malaysia, the Philippines, Vietnam and Brunei—are locked in a series of competing claims with both China and Taiwan (and with each other) over the disputed Spratly and Paracel Islands.

The South China Sea was high on the agenda at last month's Asean Foreign Ministers Retreat, with Indonesian foreign ministry officials confirming it is a top priority for the group's new chair. Following the meeting, Mr. Natalegawa called for a "breakthrough" on the issue, arguing that it "must progress in the immediate future."

Tensions have cooled somewhat since Beijing backed away from its statement last year that it considers the sea one of its "core interests," putting it on a par with Taiwan and Tibet. But the Asean states nevertheless worry that a fast-growing China might soon be able to aggressively defend its claims in the sea.

Indonesia, as both the chair of Asean and its largest member, sees itself as a natural fit to play the role of honest broker in mediating the disputes. Indeed, a successful outcome under its watch would increase Indonesia's diplomatic prestige considerably.

But Indonesia has another important reason to see the matter settled. Although not directly involved in the Spratly or Paracel Islands, Indonesia does have a festering disagreement of its own in the South China Sea. In 1993, China quietly made a territorial claim over waters surrounding the Natuna Islands, part of Indonesia's resource-rich Riau Province.

The Suharto government did not formally respond to the claim, fearing that to do so would legitimize it. However, Chinese maps of the South China Sea now include an area north of the Natuna Islands that falls within Indonesia's Exclusive Economic Zone.

Lying under the sea bed surrounding the Natunas is one of Indonesia's largest liquefied natural gas reserves. Largely unexploited, the area may hold up to one-quarter of Indonesia's recoverable gas supply. Indonesia is worried that an energy-hungry China might see the Natunas as a prize. In June, Indonesian Defense Ministry Spokesman Wayan Midhio included the South China Sea (along with the Malacca Strait and the Andaman and Nicobar Islands in the Indian Ocean) among Indonesia's top three security priorities.

As an archipelagic state, Indonesia is understandably wary of China becoming the preponderant maritime power in the Asia Pacific. So it's natural that Jakarta is eager to engage strategic heavyweight America more closely in the region. Along with Russia, the United States will join the East Asian Summit for the first time this year, and the Southeast Asian nations hope the two big powers will provide a counterweight to China's growing clout.

The Asean member states are playing a difficult game of balancing and constraining China while benefiting from the economic opportunities of its rise. The fact that they are lining up behind Indonesia's leadership is an encouraging sign.

Jessica Brown is a research fellow at the Centre for Independent Studies.